TEAM Launches Petition Against Conversion of USD Salaries to MVR, Gains Support from 42 Resorts
Holiday Inn Resort Kandooma Maldives. | Photo: Visit Maldives
The Tourism Employees Association of Maldives (TEAM) has launched an official campaign opposing the conversion of resort employees’ salaries and service charges from US dollars to Maldivian rufiyaa, with workers from 42 resorts signing a petition within its first day.
TEAM announced the campaign on Friday, saying all resorts affiliated with the union had agreed to participate. By yesterday, employees from 42 resorts had signed the petition, including workers at Anantara Kihavah, Cheval Blanc Randheli, Vakkaru Maldives, JOALI Maldives, Six Senses Laamu, Radisson Blu Resort Maldives, One&Only Reethi Rah and CROSSROADS Maldives.
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The campaign comes amid growing opposition from tourism industry stakeholders to recent changes to the country’s foreign exchange framework.
Parliament last week approved an amendment to the Foreign Exchange Act requiring resorts to exchange 40 per cent of their foreign currency earnings through local banks.
The government had initially proposed removing an existing option under which resorts could exchange either 20 per cent of their foreign exchange earnings or USD 500 per tourist, making the 20 per cent requirement mandatory. Economic Minister Mohamed Saeed later told Parliament that the government was considering raising the requirement to 40 per cent.
The 40 per cent requirement was subsequently introduced through an amendment submitted by Funadhoo MP Mohamed Mamdhooh to a bill originally submitted by Holhudhoo MP Abdul Sattar Mohamed.
The Maldives Association of Tourism Industry (MATI) has criticised the measure, warning that the higher conversion requirement could place additional financial pressure on resorts. The association has highlighted expenses that operators continue to incur in US dollars, including fuel, salaries, service charges, taxes, lease payments and foreign loan obligations.
The government has maintained that the foreign exchange measures are aimed at increasing the availability of US dollars in the domestic market. It has also said its longer-term objective is to shift salaries and other transactions from US dollars to Maldivian rufiyaa.
